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SAPTO Calculator & Eligibility Checker Seniors and Pensioners Tax Offset

SAPTO, the seniors and pensioners tax offset, is a non-refundable offset for people who receive an Australian Government pension or allowance or who qualify for the Age Pension without claiming it. For 2025-26 the maximum is $2,230 single and $1,602 for each partner of a couple, reducing by 12.5 cents per dollar of rebate income above $34,919 or $30,994. Work out your exact entitlement below, or check whether you qualify with the eligibility checker.

Official ATO ratesUpdated FY2026-27Free foreverNo signup required

SAPTO Calculator

This calculator works out your seniors and pensioners tax offset (SAPTO) for the 2025-26income year from the ATO’s published rates and thresholds. You claim SAPTO in the tax offsets section of your return.

You did not have a spouse at any point in the income year.

$

Rebate income is your taxable income plus reportable super contributions, total net investment loss and adjusted fringe benefits, not just your salary.

Your SAPTO
$2,220
Reduced by the shading-out taper

How this is worked out

Maximum offset$2,230
Shading-out threshold$34,919
Cut-out threshold$52,759
Reduction at 12.5c per $1 over−$10.13
SAPTO$2,220

SAPTO is non-refundable: it reduces tax payable to a minimum of zero and does not create a refund on its own. It stacks with the Low Income Tax Offset and the zone tax offset. If you are entitled to at least $1 of SAPTO you also qualify for a higher Medicare levy low-income threshold.

SAPTO Eligibility Checker

The checker asks three questions in the order the ATO applies them: the payment condition, the income condition and the jail exclusion.

1. Which describes you during the income year?
2. Your situation and rebate income
3. Jail

Answer question 1 to see your result.

2026-27: the ATO has said SAPTO thresholds change from 2026-27 because of the lower 15% tax rate, while the maximum offsets ($2,230 single, $1,602 each for a couple) stay the same. The eligibility rules above do not change. The figures on this page are the ATO’s published 2025-26 thresholds for the return being lodged now.

A retired couple talk over a tablet and cups of tea at a sunny table with a beach view

What Is SAPTO?

SAPTO is a non-refundable tax offset for Australians who receive an Australian Government pension or allowance, or who qualify for the age pension without claiming it. It reduces the income tax you pay, and the ATO applies it automatically when it assesses your return.

Because it is non-refundable it can reduce your tax to zero but cannot produce a refund by itself. It stacks with the Low Income Tax Offset and the zone tax offset.

SAPTO has a second effect, on the Medicare levy. If you are entitled to at least $1 of SAPTO, you also qualify for a higher Medicare levy low-income threshold. If your income reduces your SAPTO to zero, you lose that too.

SAPTO Rates and Thresholds

Three figures matter for each situation: the maximum offset, the shading-out threshold below which you get the full amount, and the cut-out threshold at which the offset disappears.

StatusMaximum offsetShading-out thresholdCut-out threshold
Single$2,230$34,919$52,759
Each partner of a couple$1,602$30,994$43,810
Each partner of an illness-separated couple$2,040$33,732$50,052

ATO, Seniors and pensioners tax offset. 2025-26 income year.

Above the shading-out threshold the offset reduces by 12.5 cents for every dollar, and the ATO rounds the result up to the nearest whole dollar.

Worked Example: $39,000 Rebate Income, Single

This is the ATO’s own example. A single age pensioner with rebate income of $39,000 is above the $34,919 shading-out threshold but below the $52,759 cut-out, so the offset tapers:

Rebate income above the threshold$39,000 − $34,919 = $4,081
Reduction at 12.5c per $1−$510.13
SAPTO (rounded up)$1,720

How SAPTO Works for Couples

Two different incomes drive the calculation, and mixing them up is the most common error. Your eligibility is tested on half your combined rebate income. Your offset amount is then worked out on your own rebate income.

So a couple can pass the SAPTO eligibility test while one partner still receives nothing. In the ATO’s example, a couple with rebate incomes of $54,020 and $25,677 have a combined $79,697. Half of that is $39,848.50, comfortably under the $43,810 cut-out, so the couple qualifies. But the higher earner’s own $54,020 is well past the cut-out, so their offset is nil, while their partner receives the full $1,602.

The same eligibility test also helps a single-income couple. Where one partner earns $33,650 and the other nothing, the couple is assessed at$16,825 each, so the earner stays eligible and receives $1,270.

What Counts as Rebate Income?

Rebate income is wider than taxable income, which is why estimating SAPTO from your salary alone overstates it. It is the total of:

  • your taxable income
  • reportable superannuation contributions
  • total net investment loss
  • adjusted fringe benefits

If you salary-sacrifice into super, those contributions count toward rebate income even though they are not taxable income. See our salary sacrifice calculator for how that interacts with your take-home pay.

Who Qualifies for SAPTO?

You must satisfy both a pension condition and an income condition.

The pension condition

You received one of these in the income year: Age Pension, Carer Payment, Disability Support Pension (if you are age-pension age), Education Entry Payment, Parenting Payment (single), age service pension, income support supplement, Veteran Payment, invalidity service pension (if age-pension age), or partner service pension.

You also qualify if you were age-pension age and eligible for the age pension but did not receive it (because you did not claim, or failed the income or assets test), provided you meet an Australian residence condition. Age-pension age has been 67 since 1 July 2023.

The income condition

  • No spouse: rebate income under $52,759
  • Couple: combined rebate income under $87,620
  • Illness-separated: combined rebate income under $100,104

You cannot claim SAPTO if you were in jail for the whole income year.

Transferring Unused SAPTO to a Spouse

If you and your spouse are both eligible and one of you does not use the full offset, the unused part can transfer. The ATO calculates and applies this when you both lodge; you do not claim it manually.

Where your spouse’s taxable income is $6,000 or less, the whole offset is available to transfer. Above that it reduces by 15 cents in the dollar: A − ((B − $6,000) × 0.15), where A is your spouse’s offset and B is their taxable income plus exempt pension income.

Related Calculators

Frequently Asked Questions

SAPTO questions and answers

How much is SAPTO?

The maximum seniors and pensioners tax offset is $2,230 if you are single, $1,602 for each partner of a couple living together, and $2,040 for each partner of an illness-separated couple, for the 2025-26 income year. You receive the full amount if your rebate income is below the shading-out threshold: $34,919 for singles.

What is the SAPTO income threshold?

SAPTO has two rebate income thresholds. Below the shading-out threshold you get the maximum offset: $34,919 single, $30,994 each for a couple, $33,732 each if illness-separated. At or above the cut-out threshold you get nothing: $52,759 single, $43,810 each for a couple, $50,052 each if illness-separated.

Who is eligible for SAPTO?

You must meet two conditions. First, you must receive an Australian Government pension or allowance (Age Pension, Carer Payment, Parenting Payment (single), Disability Support Pension if you are age-pension age, or a DVA service pension), or qualify for the age pension without claiming it. Second, your rebate income must be under the relevant limit. Age-pension age has been 67 since 1 July 2023.

Am I eligible for SAPTO?

Check three things. (1) You received an eligible payment (Age Pension, Carer Payment, Parenting Payment (single), Disability Support Pension or invalidity service pension at age-pension age, a DVA age service pension, income support supplement or Veteran Payment), or you were 67 or older and eligible for the Age Pension but did not get it because you did not claim or failed the income or assets test. (2) Your rebate income is under $52,759 single, or half your combined rebate income is under $43,810 for a couple. (3) You were not in jail for the whole year.

Can self-funded retirees get SAPTO?

Yes, if they are age-pension age (67) and would be eligible for the Age Pension apart from not claiming it or failing its income or assets test, meet the residence rules, and are under the SAPTO rebate income limit. A self-funded retiree who qualifies this way gets SAPTO without receiving any pension.

How is SAPTO calculated for a couple?

SAPTO for a couple uses two different incomes, which catches people out. Eligibility is tested on HALF your combined rebate income against the cut-out threshold of $43,810. But the offset amount is then worked out on your OWN rebate income against the shading-out threshold of $30,994. So a couple can qualify while one partner still receives nothing because their individual income is too high.

What is rebate income?

Rebate income is broader than taxable income. It is your taxable income plus reportable superannuation contributions, total net investment loss, and adjusted fringe benefits. Using taxable income alone will overstate your offset.

How fast does SAPTO reduce?

The offset reduces by 12.5 cents for every dollar of rebate income above the shading-out threshold, and the ATO rounds the result up to the nearest whole dollar. A single person on $39,000 gets $2,230 − (($39,000 − $34,919) × 0.125) = $1,719.88, rounded up to $1,720.

Can I transfer unused SAPTO to my spouse?

Yes. If you and your spouse are both eligible and one of you does not use the whole offset, the unused part can transfer. The ATO works this out when you lodge. Where your spouse's taxable income is $6,000 or less the full amount transfers; above that it reduces by 15 cents in the dollar.

Is SAPTO refundable?

No. SAPTO is non-refundable, so it reduces your tax payable to a minimum of zero but does not generate a cash refund on its own. Any excess that does not transfer to your spouse is lost, not carried forward.

Does SAPTO affect the Medicare levy?

Yes, favourably. If you are entitled to at least $1 of SAPTO you also qualify for a higher Medicare levy low-income threshold. If your income reduces your SAPTO to zero, you cannot use the SAPTO Medicare threshold.

Can I claim SAPTO and the Low Income Tax Offset together?

Yes. SAPTO, LITO and the zone tax offset are separate non-refundable offsets that stack. Together they can reduce your tax to zero but not below it.

Which financial year do these SAPTO amounts apply to?

These SAPTO amounts apply to the 2025-26 income year, the return being lodged now. The ATO publishes SAPTO thresholds with each year's rates, and had not released 2026-27 figures when this page was last verified.

What if I was in jail during the year?

You cannot claim SAPTO if you were in jail for the whole income year.

The maximum seniors and pensioners tax offset is $2,230 if you are single, $1,602 for each partner of a couple living together, and $2,040 for each partner of an illness-separated couple, for the 2025-26 income year. You receive the full amount if your rebate income is below the shading-out threshold: $34,919 for singles.

SAPTO has two rebate income thresholds. Below the shading-out threshold you get the maximum offset: $34,919 single, $30,994 each for a couple, $33,732 each if illness-separated. At or above the cut-out threshold you get nothing: $52,759 single, $43,810 each for a couple, $50,052 each if illness-separated.

You must meet two conditions. First, you must receive an Australian Government pension or allowance (Age Pension, Carer Payment, Parenting Payment (single), Disability Support Pension if you are age-pension age, or a DVA service pension), or qualify for the age pension without claiming it. Second, your rebate income must be under the relevant limit. Age-pension age has been 67 since 1 July 2023.

Check three things. (1) You received an eligible payment (Age Pension, Carer Payment, Parenting Payment (single), Disability Support Pension or invalidity service pension at age-pension age, a DVA age service pension, income support supplement or Veteran Payment), or you were 67 or older and eligible for the Age Pension but did not get it because you did not claim or failed the income or assets test. (2) Your rebate income is under $52,759 single, or half your combined rebate income is under $43,810 for a couple. (3) You were not in jail for the whole year.

Yes, if they are age-pension age (67) and would be eligible for the Age Pension apart from not claiming it or failing its income or assets test, meet the residence rules, and are under the SAPTO rebate income limit. A self-funded retiree who qualifies this way gets SAPTO without receiving any pension.

SAPTO for a couple uses two different incomes, which catches people out. Eligibility is tested on HALF your combined rebate income against the cut-out threshold of $43,810. But the offset amount is then worked out on your OWN rebate income against the shading-out threshold of $30,994. So a couple can qualify while one partner still receives nothing because their individual income is too high.

Rebate income is broader than taxable income. It is your taxable income plus reportable superannuation contributions, total net investment loss, and adjusted fringe benefits. Using taxable income alone will overstate your offset.

The offset reduces by 12.5 cents for every dollar of rebate income above the shading-out threshold, and the ATO rounds the result up to the nearest whole dollar. A single person on $39,000 gets $2,230 − (($39,000 − $34,919) × 0.125) = $1,719.88, rounded up to $1,720.

Yes. If you and your spouse are both eligible and one of you does not use the whole offset, the unused part can transfer. The ATO works this out when you lodge. Where your spouse's taxable income is $6,000 or less the full amount transfers; above that it reduces by 15 cents in the dollar.

No. SAPTO is non-refundable, so it reduces your tax payable to a minimum of zero but does not generate a cash refund on its own. Any excess that does not transfer to your spouse is lost, not carried forward.

Yes, favourably. If you are entitled to at least $1 of SAPTO you also qualify for a higher Medicare levy low-income threshold. If your income reduces your SAPTO to zero, you cannot use the SAPTO Medicare threshold.

Yes. SAPTO, LITO and the zone tax offset are separate non-refundable offsets that stack. Together they can reduce your tax to zero but not below it.

These SAPTO amounts apply to the 2025-26 income year, the return being lodged now. The ATO publishes SAPTO thresholds with each year's rates, and had not released 2026-27 figures when this page was last verified.

You cannot claim SAPTO if you were in jail for the whole income year.
How this calculator works▼

Rates, thresholds and the calculation method come from the ATO’s Seniors and pensioners tax offset page (QC72197). They apply to the 2025-26 income year, the return being lodged now. The ATO had not published 2026-27 SAPTO thresholds when this page was last verified, so it is not labelled with that year. Every figure on this page is derived from a single constants file and checked against the ATO’s nine published worked examples in automated tests.

Sources & References

  1. 1
    Seniors and pensioners tax offset, Australian Taxation Office
  2. 2
    Rebate income, Australian Taxation Office

Last verified: 9 October 2026. Our content is based on the latest information from official Australian government sources.

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